AIG unit expands Hong Kong IPO to $20.5 billion

[October 30, 2010]  HONG KONG (AP) -- The Hong Kong listing of AIG's Asian unit, which aims to raise funds for repaying U.S. federal bailout loans, has been expanded to $20.5 billion.

AIA Group Ltd. said in a statement late Friday it increased the number of shares offered from 7.03 billion to 8.08 billion. The shares were priced at 19.68 Hong Kong dollars ($2.54) each and surged 17 percent on their first day of trading Friday to close at HK$23.05 ($2.97).

The proceeds from the Hong Kong IPO will be used to repay $20 billion AIG owes the Federal Reserve Bank of New York.

American International Group Inc. received $182 billion from the U.S. government after suffering massive losses from investments in complex derivatives -- the biggest of the Wall Street bailout packages.

The AIA IPO was Hong Kong's biggest ever and the world's third-biggest.

[Associated Press]

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